By Huileng Tan Oil futures are higher in Asian trading hours Thursday on broad optimism that the U.S. Federal Reserve would continue supporting the U.S. economy under the leadership of incoming chair-nominee Janet Yellen. U.S. crude futures however saw limited upside amid nervousness about supply ahead of the Energy Information of America's inventory data to be released later in the day. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $93.94 a barrel at 0602 GMT, up $0.06 in the Globex electronic session. Prices were choppy, moving between the positive and negative territories for much of the day as investors stayed on the sidelines ahead of the EIA data. The gains in oil futures come on the back of the dollar's weakness against a number of Asian currencies, after Federal Reserve chair nominee Ms. Yellen released remarks suggesting the central bank should continue supporting the U.S. economy with stimulus. In a prepared statement, Ms. Yellen said that unemployment at 7.3% in October was still too high "reflecting a labor market and economy far short of their potential." Morgan Stanley's chief international economist Joachim Fels said at a press conference Wednesday that the Fed is likely to hold off tapering in the near-term. Geopolitical tensions meanwhile, continue to lift Brent crude, as supply issues persist amid protests at oil and gas facilities in Libya. December Brent crude on London's ICE Futures exchange rose $0.16 to $107.28 a barrel at 0602 GMT. Energy consulting firm The Schork Group said in a note that even though consumer appetite for gasoline is still strong, the availability of substitutes will put a lid on crude oil prices, with Brent capped at $118/bbl. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 210 points to $2.6490 a gallon, while December heating oil traded at $2.8985, 8 points higher. ICE gasoil for December changed hands at $901.75 a metric ton, up $0.50 from Wednesday's settlement.

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